Document 1972240

Harbor Shores
Brownfields Conference
September 2015
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Speakers:
Carrie Geyer
John Byl
Bob McFeeter
Jeff Noel
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What, where, why …. and
lessons learned
Jeff Noel
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1986 VIEW OF BENTON HARBOR
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“You want to build a golf course and do what?”
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2014 Video
HARBOR SHORES
1988, 1993
PLANS
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1911-1984 The Landscape of the Community
HARBOR SHORES STATISTICS
Harbor Shores has been clear and transparent since its
inception. It is a true community-wide effort.
§ Any and all profits from the development will be given back to the community
§ The organizations that oversee Harbor Shores have more than 50 elected officials,
community organizations and business leaders that govern their activities
§ Over 3,000 area residents have taken tours of the project
§ 380 public meetings have been held regarding the initiative
§ Harbor Shores is a public course, with no fees charged for play covering any
portion of the over $20 million to construct the golf course, or $50 million of
project investment
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HARBOR SHORES STATISTICS
Harbor Shores includes a Jack Nicklaus Signature Golf
Course. The public course is the center piece of the 530-acre
residential, golf, recreational and waterfront community.
§ The development required the acquisition of over 148 private parcels, including
40 distinct “facilities” and a Super Fund site
§ The course employs over 150 people each season, including 30 summer youth employees
§ The development is the 4 time host to the Senior PGA Championship presented by
KitchenAid, with 12 hours of live network coverage, 400 international journalists
§ The First Tee Program serving 2400 children is housed in new facility on the course
§ Whirlpool Corporation, Harbor Shores and its sponsors have aligned with the Benton
Harbor Boys & Girls Club
§ Whirlpool Corporation and Harbor Shores help raise over $1.4 million annually for the
organizations operations while also helping raise over $8 million for new facilities for both
organizations
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HARBOR SHORES STATISTICS
Harbor Shores has restored beauty to a pristine area of Lake
Michigan’s waterfront through the restoration of Jean Klock
Park, the clean-up of brown fields, and the preservation of
natural wetlands.
§ To date, over 140,000 tons of solid waste and building debris have been removed
§ Enough trash and material has been removed to fill a football field 60 feet high
§ Over 3 million square feet of abandoned buildings have been demolished to make
way for future development
§ Much of the clean-up and infrastructure investments would have been the responsibility of
local municipalities
§ The Harbor Shores project has relieved that financial burden of local government.
§ Harbor Shores built and connected a 12-mile walking trail system for the community
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HARBOR SHORES STATISTICS
§ The projects account for over $48 million in investment
§ In the past 12 years, over $74 million has been invested
in infrastructure improvements including roads
§ The Michigan Department of Transportation has invested over
$55 million, including $14 million project to enhance Benton
Harbor’s Main Street
§ 300,000 square feet of buildings have been renovated in the
City of Benton Harbor
§ Over $7 million has been invested in launching and developing
the Benton Harbor Arts District which is bringing vibrancy back
to the downtown area.
§ Whirlpool Corporation is investing $120 million in a new office
complex on land assembled by Harbor Shores, and in creating
the worlds refrigeration largest technology center creating 180
news and relocating another 1,000 employees into downtown
Benton Harbor to further help stimulate new investment in the
City
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I. Think Big, Act Small
…..but be process
driven, measure
outputs
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Embrace diversity of thought, create inclusion….
We conducted tours for over 3,000; sent 30,000 news letters each
year; attended over 380 public meetings
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Community and Economic Development..
Recognize the Interdependencies
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COMMUNITY BASED PROJECTS
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THE EDGEWATER PROJECT
A $60 million step for Harbor Shores..1997-2002
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IV. Embrace the role of the Regulatory Agency
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TAX CREDITS & LOANS
V. Tax Credits and Loans are more costly than advertised
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Yet are essential
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Leadership- Annexation of land from one city into another
Strategy– Celebrate the incremental
victories…Congratulate the community ..focus
on right studies, right plans
Structure– Not for Profit
Support Entity, Legal,
Accounting, Engineering
Talent all a must
Process…
Weekly meetings, Title Search’s on every
Parcel, Record Keeping for the long term..build a
governance system and management system early 25
The Physical Realities
of a Gargantuan
Project
…Bob McFeeter
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VISION TO REALITY
March 30, 1968
October 29, 2010
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FORMER SUPER FUND SITE
Hole 14 – Before/After
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DRIVING RANGE
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Harbor Shores Today
$85M Corporate Office Complex
Hideaway Cottages $350-$800K
$20M Technology Center
Fairways Homes $800K-$1.5M
Edgewater Resources
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Harbor Village Phase I Under Construction
The Legal
Realities
of the Project:
John Byl
Financial Incentives
• Challenges:
– Four municipalities: City of Benton Harbor, City of St.
Joseph, Benton Township and Berrien County
– Approximately 170 parcels needed to be
acquired/assembled
– Many former industrial sites with significant contamination
– Landfilling had occurred across several of the sites
– A Superfund site was in the middle of the property
– Infrastructure in Benton Harbor had been neglected
Financial Incentives
• Opportunities:
– Whirlpool Foundation and Whirlpool Corporation
provided initial funding and significant additional
resources/support
– Local economic development groups provided
substantial support
– Michigan had one of the best Brownfield Financial
Incentive programs in the country
Financial Incentives
• Incentive Tools Used for Project:
– Urban Land Assembly
– U.S. EPA Revolving Loan Fund
– Michigan DEQ Grants and Loan
– New Markets Tax Credit
– State Brownfield Tax Credits
– CDBG
– MDOT Economic Development Funds
– Renaissance Zones
– Other State, Local and Federal Programs
Financial Incentives
• Brownfield TIF
– This is the use of increased property tax revenue from
the project itself (which would not have occurred
without this tool) to reimburse eligible expenses,
including environmental, demolition, public
infrastructure and site preparation. A total of $73
million, plus interest, was approved. Only actual costs
($20 million to date) plus interest will be reimbursed.
No tax revenue other than increased property taxes
from the project will be used.
Financial Incentives
– It was critical to the success of the project to annex a
portion of the City of St. Joseph into the City of
Benton Harbor through what is known as a PA 425
Agreement.
• This is a conditional transfer of property from the City of St.
Joseph (the portion in the project) to Benton Harbor during
the duration of the TIF reimbursement.
• Additional expenses were eligible in the St. Joseph portion of
the project as a result of the 425 Agreement:
– Infrastructure (roads, utilities, etc.), and
– Site preparation (grading, enhanced foundations, sheet piling,
etc.)
Our Five Lessons and Four Takeaways
I. Think Big…..Act Small
II. Embrace diversity of thought, create inclusion
III. Community and Economic Development.. Recognize
the Interdependencies
IV. Embrace the role..and value of regulatory agencies
V. Credits, grants, loan programs are more costly than
advertised…yet are essential
Leadership
Strategy
Structure
Process
As seen on Golf Channel
Key Message
“ Harbor Shores is not the silver bullet, nor panacea for all
that ails the community. It was never intended to be the
single solution to create jobs and community
transformation, though many tried to make it so…. Harbor
Shores is but one of many pieces of the community puzzle, a
tool to help attract visitors, investors, new homeowners and
employers alike. The project is an enabler, not a genie in a
bottle that by itself cures all. Harbor Shores can be a
powerful enabler yes, but one that must be used wisely to
be effective. Now is not the time for our community to rest
on our laurels of but one succcessfull project”
SR PGA-- A Tool To Sell
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